Punch List
A punch list is a document generated at or near project completion that itemizes all remaining work, deficiencies, or items that don't meet contract specifications. The owner or architect walks the finished space, identifies punch list items, and the contractor is obligated to complete all items before final payment is released.
Updated July 13, 2026
Key Facts
- 1Industry benchmarks suggest a well-managed commercial project has 50–150 punch list items; projects with poor documentation or rushed timelines can have 300+
- 2Retainage — typically 5–10% of contract value held by the owner — is usually not released until the punch list is completed and accepted
- 3The punch list walk typically occurs at 'substantial completion,' which is when the space is usable but not fully finished
What Gets Put on a Punch List
Punch list items range from minor cosmetic issues (paint touch-ups, scratched hardware, crooked outlet covers) to functional deficiencies (HVAC not balancing correctly, door not closing properly, light fixture not working). Both types must be resolved before the space is signed off.
For commercial buildouts, common punch list items include: HVAC commissioning adjustments, paint touch-ups and scuffs from the construction process, missing or damaged hardware, caulking and trim gaps, lighting that doesn't match specifications, and plumbing fixtures that need adjustment.
How to Conduct a Punch List Walk
Walk the space systematically — room by room, surface by surface, system by system. Bring your construction drawings to verify that what was built matches what was specified. Check every door (opens, closes, latches, locks), every electrical outlet (test with a tester), every light fixture, every plumbing fixture, every HVAC diffuser. Note anything that doesn't meet spec, even if it seems minor.
Document everything in writing with photos. A punch list that exists only verbally is a recipe for disputes. Use a shared document that both owner and GC acknowledge, with a target completion date for each item.
Frequently Asked Questions
When does the punch list happen?
The punch list walk occurs at or just before 'substantial completion' — the point when the space is functional enough for its intended use, even if minor items remain. This is distinct from 'final completion,' which requires all punch list items to be resolved.
Can I withhold payment until the punch list is complete?
Yes — this is exactly what retainage is designed for. Retain 5–10% of the contract value until all punch list items are completed and accepted. This gives the contractor a financial incentive to close out all remaining items promptly.
What if the contractor refuses to fix punch list items?
This situation is addressed in the contract. Typically, if the contractor fails to complete punch list items within the agreed timeframe, the owner can hire another contractor to complete the work and deduct the cost from the retainage. This right must be explicitly stated in your contract.